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Simply Do It / Single Family

Mortgage Programs: How Investors Use Them Wisely

Jessica Pool 18.10.2022 Blog, General Investing, Houses, Mortgage, Rental Property, Single Family, US Real Estate 0

[vc_row row_type=”row” type=”full_width” text_align=”left” video=”” css_animation=””][vc_column][vc_column_text]I recently had a conversation with a potential new investor and he asked me “With rates being where they’re at, do you think it’s a good idea to wait to start investing?”

My response was something along the lines of…

While you’re waiting for rates to “maybe” go down sometime in the future, you are “for sure” losing out on the appreciation your property would have made during that time.  Appreciation is where you are going to be making the bulk of your wealth and I think it’s foolish to forego that gain in order to wait out interest rates.  You can always refinance down the line if/when rates do go down, but you can’t ever go back and pay less for your house.

[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row row_type=”row” type=”full_width” text_align=”left” video=”” css_animation=””][vc_column][vc_single_image image=”306214″ img_size=”full” alignment=”center” style=”vc_box_shadow” qode_css_animation=””][vc_empty_space][/vc_column][/vc_row][vc_row row_type=”row” type=”full_width” text_align=”left” video=”” css_animation=””][vc_column][vc_column_text]In times like these, I also urge investors to take advantage of different loan programs that are offering lower rates.  Adjustable Rate Mortgages (ARM) can be beneficial to a buyer who is maybe planning to refinance or sell in the next 5, 7, 10 or 15 years.  These loans typically offer lower interest rates but still a fixed period at the beginning of the loan term (some up to 15-years fixed period!).  The payments are still amortized over 30-years and act like a traditional 30-year mortgage during that fixed period.

We always urge investors to think about the long-term gains and stay in the real estate market for the maximum amount of wealth building opportunity.  That does not mean that you must buy and keep the same real estate properties if there are more beneficial opportunities out there.  The average investment property is held for approximately 5-years.  Why would you invest the extra money in a higher rate to secure a fixed period you will not be using?

 

 

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Tap into your Rental House Equity!

danib200@gmail.com 23.02.2021 Blog, General Investing, Investment Properties, Rental Property, Single Family, US Real Estate 0
That rental property you bought with us over 6.5 years ago may buy you additional rentals!
 
Have you checked your rental house’s value recently?
 
My guess is it went up significantly since you purchased it!
 
When was the last time you calculated how much you have gained from value increase + mortgage principal reduction + cash flow (- additional expenses)?
 
The main challenge we are seeing with properties that were purchased some 7+ years ago is that the rent did not keep up with the value increase.
 
Meaning – it is possible the value has increased 30% or even 50% since you purchased it (in some cases even doubled) but the rent only went up 10-20%, maybe a bit more.
 
The big question is how do you tap into that equity? or should you tap into your equity?  
 
Here’s the challenge – if you refinance and pull cash out, you may reduce the cash flow and hurt the property’s stability. Or it is possible you will only be able to pull out a small amount of cash which won’t be enough to buy another property.  
 
So what are your options? 
 
Option I – do nothing and keep enjoying the cash flow.
 
Option II – refinance and don’t take cash out or take very little making sure you keep a minimal required cash flow – MRC.
At a minimum, I suggest taking advantage of the current super-low mortgage rates and better your cash flow by getting a new mortgage with a lower rate – in case you have not done so already.
 
Option III – sell or better yet 1031 exchange and utilize your gained equity to buy TWO or more properties instead of the one you currently own. 
In short, 1031 exchange is a legal tax defer (not tax elimination) mechanism that allows you to defer tax to a future time. 1031 exchange is a bit more complex. You should consult with the right professional about it.
 
Here are a few challenges we think you should be aware of and we can help you with:
  • Refinance duration – these days it takes approx. 40-50 days to complete a refinance – lenders are swamped.
  • Selling while occupied – if you want to sell and your house is tenant-occupied that may be difficult. If you call us, we may be able to assist in such a situation.
  • Buying these days – inventory levels in most US metros are low and demand for housing is high. This works in your favor if you are selling but will make it harder if you are buying, especially if you are doing a 1031 exchange. In case you are doing a 1031 exchange, we may be able to assist you better in meeting your 1031 exchange requirements. If you call us, we may be able to assist in such a situation.
 
Confused? Not sure what to do? Call me and let’s explore your options.

Not Boring vs. Boring Investment

Powered by Simply Do It 31.01.2019 Blog, General Investing, Home Brew, Investment Properties, Rental Property, Single Family, US Real Estate 0

Here’s how a NOT boring investment looks like:

In 1952 built house, 850 square feet, two bedrooms one bathroom, for $60,000, in not so good school district, with tenants who pretty much live paycheck to paycheck.

This type of an investment will most likely generate more vacancies, more evictions, and more repairs.

On paper this one probably looks amazing but in reality it typically does not.

Every house has repairs, but then older houses when a repair comes up, it’s usually means a bigger expense because you have to update things up to code and we dealing with older plumbing, older electrical wires, and older mechanical.

Here’s how a BORING investment looks like:

A 1980 or after built, three to four bedrooms, two to three bathrooms, maybe a den or an office, 1,150 square feet or more, two-car garage, in a nice community, in a good school district, with tenants that have good jobs for about $150,000.

Such a property will typically generate less “noise”, will most likely hold tenants for a longer period of time, and with minimal hiccups. It will be attractive to other tenants when the house is vacant, be attractive to sellers when you decide to sell the house, and when things break it will most likely generate smaller repair bills.

Many investors are attracted to the cheaper property which is actually the NOT boring one. They find it more exciting to have such a property but in reality it turns out to be the a bigger hassle and more headache then they wanted to get into in the first place.

How To Beat The Competition

Powered by Simply Do It 18.05.2018 Blog, Economics, FAQ, General Investing, Investment Properties, Mortgage, Single Family 0

When homes sell in minutes and offers accept way over list price, how do you stand a chance?

In recent months, I have seen a significant increase in our investors’ frustration level.

To quote one of our investors:
“There’s a limit on how responsive you can be. Today the agent published 4 new houses. I replied in less than one hour but all got sold in 15 minutes. How can you beat that? No one checks emails every 5 minutes…”

We are seeing a “storm” of multiple factors: high-demand for good properties by the marketplace, low inventory levels during seller’s market period, and houses that do pass our criteria that still need to cashflow.

So what can you do?

Be a part of our“Frustration Free” SFHs Fund for buying bulks!

  • Access properties that are not offered to the public. Most times, such sellers are not interested in liquidating one property at the time, but to liquidate a package of houses.  
  • Typically, houses purchased in a package are all, or mostly, rented.
  • Pain-free ownership and hassle-free investment portfolio management.
  • Vacancy distribution – never have 100% vacancy at one time.

 

Direct vs. Indirect Ownership

For years, I personally believed that direct ownership, i.e. you own the property, is the best way to go for a variety of reasons. Main reason being financing.

These days, I admit I have a new take on it. And think indirect ownership is another good option for investors. You invest in a fund that is professionally managed. The fund holds a large number of rentals and obtains financing.

This doesn’t mean indirect is better than direct or vice versa. Both options are good and can help you accomplish similar financial goals. And in many ways, one compliments the other.

Indirect opens up possibilities to us that in today’s market direct ownership is limited.

For the past 15 years, I have been guiding and supporting real estate investors. I estimate that during those years I have assisted in the purchase of more than 3500 houses, most purchased as direct ownership.

Throughout all those years, complaints about property managers, vacancy, cost of repairs, and other related ownership issues never stopped. And while always telling our investors to lower expectations from property managers, to see the big picture, and to hang in there – I always felt the need to find a way for us to take this “pain” from our investors. I always wanted to find a way to provide you with less trouble and hassle. Indirect ownership offers that.

Is This Fund For Me?

Do you relate to one or more of the following:

  1. Frustrated from attempting or making offers that do not succeed.
  2. Wish you could buy rented houses vs. vacant ones.
  3. Tired of dealing with ownership “noise” or just wished you could avoid it.
  4. Don’t feel you have the confidence to start or to buy another property, mainly out of state.
  5. Want to avoid the stress of a vacancy of your rental.
  6. Want to outsource the decision making process of selecting a property and outsource the need to deal with the ongoing of ownership.
  7. Already have multiple properties and do not want to add another one directly to your portfolio.

 

 

If you answered ‘YES’ to one or more, you’d probably be a good fit for our next Single Family Homes (SFHs) Fund.

You can find more about the next SFHs Fund here: https://reistart.com/s1uxX

Quick summary about the fund

  • Location of houses: North Houston – approx. 30 minutes north of downtown
  • Projected hold period: 10 years
  • Minimum investment amount: $50,000
  • Projected ROI: 15% per year after 10 years – NO GUARANTEES
  • Number of houses: 18
  • Occupancy: rented
  • General house rating: B+
  • Seller reason to sale: reposition portfolio for retirement
  • Cost: $3,000,000*
  • Loan: $2,100,000*
  • Down-payment: $900,000*
  • Other fees and costs: $375,000* (closing costs, make-ready costs, loan cost, required reserve, etc.)
  • Total amount needed: $1,275,000*

 

* Projected figures.

To participate, you first need to complete the investor suitability questionnaire: https://simplydoit.net/TBcz4

Important to know

  • This type of an investment is not suitable for everyone. We may not be able to accept every interested investor. Our apologies and we hope you understand.  

 

Contact us with your additional questions.

Good luck with your investing.

All the best,
Dani

Ways to Overcome Buying Challenges in Today’s Marketplace

Powered by Simply Do It 14.03.2018 Blog, Dallas, FAQ, General Investing, Houses, Investment Properties, Nashville, Rental Property, Silicon Valley, Single Family, US Real Estate, Video 0

[vc_row row_type=”row” type=”full_width” text_align=”left” video=”” css_animation=””][vc_column][vc_column_text]I want to take a minute or two to talk about the challenges many of our investors are facing these days – high competition and low inventory.

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In most of the markets where Simply Do It is active, buying is very difficult. We are seeing multiple offers on every good house coming from buyers in the marketplace.

 

Inventory level in most areas is relatively low, which makes it even more difficult to buy.

 

The reality is not very good for us investor buyers nowadays.

 

So what can you do?


These options may not be relevant for all investors. But for some, they may will be.

 

  1. If there’s a way for you to make a cash offer, you should consider it. It will give you an advantage. You should not give up on financing. It only means you need to incorporate financing in a second step. This option is known as delayed financing. If you decide to do it, make sure you work with your lender on the execution.

 

  1. Try targeting houses that need more work. Historically, we mainly purchased houses that need approximately $5,000 or less in what we call “make-ready.” In some of the markets we are in, such as Dallas, Nashville, and Tampa; we have the local infrastructure that can handle bigger make-ready jobs than $5000.

 

Do understand, we are not referring to a full renovation work. But actually, we are referring to houses that need updating such as a new roof, new flooring, new paint job, and maybe a few other touch up items that may require $10,000 to $20,000.

 

Typically, such an improvement will result in a house that has a higher value and will get a higher rent once work is completed.

 

We know that not every investor is comfortable with doing this or has the liquidity to complete such a mini-project. But if you are one of those who do have that ability and comfort zone, you should definitely consider doing that.

 

  1. If you are able to combine number one and number two – even better.

 

  1. Consider relaxing your investment parameters. For example in some of the markets such as Dallas, we have found that houses priced at $220,000 to $270,000 will still generate the cashflow we are looking for – maybe even a bit higher than the houses that cost below $200,000.

 

Another option is maybe buying a bit older homes then you would consider at the moment or houses that are in less of a perfect school district.

 

  1. It is possible we are seeing one silver-lining and that’s the increase of the interest rate. You may be thinking that the interest rate going up is actually bad for you, but I beg to differ. We are already seeing reports that there are less applications for mortgages. This means maybe more and more buyers are moving to the sidelines. And if there are less buyers in the marketplace, we may see a shift for a seller’s market to a buyer’s market.

 

  1. Do not get discouraged. It is a tougher market to purchase. But, we are still seeing many of our investors succeeding in buying additional properties.

 

  1. Lastly, we are working on an additional strategy to help you get an advantage in the current Marketplace.

 

You should not get intimidated by the higher interest for the following reasons:

  1. Even at around 5% rate for investors, you are still looking at a relatively lower rate.
  2. It is very likely that you will refinance your current mortgage to a lower rate in the coming years. How soon will that happen – we don’t know. But, you should not assume you are locking yourself into the current rate for the next 30 Years.
  3. In order to mitigate the higher rates, you can consider putting 25% down or even 30% down. Putting a larger down would benefit you by both: having a better rate and slightly better cash flow.

 

We hope this information helps you rethink or re-calibrate your next purchase.

 

If you are still confused or not sure what to do, we suggest you let us know so we can set up a time to further discuss your specific challenges.

 

As always, I wish you success with your investment and thank you for letting us be a part of that Journey.[/vc_column_text][/vc_column][/vc_row]

Investor’s Step 1 – One on One Strategy Session (Free)

Dani Beit-Or 09.06.2016 Blog, General Investing, Home Brew, Houses, Investment Properties, Rental Property, Silicon Valley, Single Family, US Real Estate 0

It’s Action Taking Time!

We invite you to have a one-on-one conversation with Simply Do It‘s CEO Mr. Dani Beit-Or (read about Dani).

We are certain you have many questions and concerns about investing and want to accomplish your goals.

This 30 minute session will help you move forward with residential real estate investing, particularly in owning your own residential rental or following through on flipping residential properties.

During the meeting, we should be able to accomplish the following:

  • Discuss your goals
  • Create an action-items list
  • Define prerequisites for getting started – are you ready?
  • Identifying and finding ways to overcome obstacles
  • Put together ideas and thoughts into actions

You can learn more about Simply Do It‘s Guided Investing and how it can benefit you.

Meetings are typically by phone, Skype or in-person (Irvine CA).

Cost: FREE! ($375 value)

To Register (complete the Intake Form): SimplyDoIt.net/intake

After you complete the meeting Intake form, we will get back to you to schedule a time based on availability.

It’s time for you to take charge of your investments.

What’s My Benefit for Joining The Simply Do It Network?

Dani Beit-Or 08.06.2016 Blog, FAQ, General Investing, Home Brew, Houses, Investment Properties, Rental Property, Single Family, US Real Estate 0

Sharing our valued resource and tools with you.
Realtors & Property Manager Teams
Time is money! We took the time to do the due diligence by vetting our realtors, property mangers, and service providers, and educating them on how to work with our investors. They are Teams you can trust and not lose sleep at night! It’s super important – especially when you invest out of state. With our buying power, our teams want to keep us happy.

Choosing the Markets and Investment Properties
We have years of experience and are familiar with market trends. We work in markets where the numbers work, no hip or risky investments. We help you choose the right investment for your portfolio, helping you to eliminate mistakes and mitigate risks. This is a valuable decision to make which influences the success of your future investment.

Tools
We will share valuable tools with you, such as Analysis Tools, Owner’s Crash Course, and more!

Ongoing Support – From signing to post purchase and beyond.
Priceless! You are not alone in the process. We are here for you – to support you through the process, help with questions, and get involved when problems arise. Most importantly, we are here to help avoid mistakes that could cost you a pretty penny.

Access Ticket to Our Mentor – His Valuable Knowledge and Longtime Experience
Dani Beit-Or has over 16 years experience of working with thousands of investors. Once becoming our investor, you will have direct access to Dani’s advice and support for success. This mentoring, otherwise, doesn’t come cheap! (or this mentoring alone could cost you thousands of dollars.)

Insiders Only Deals

Due to Simply Do It’s buying power, we get deals that otherwise do not get listed and don’t show up on the MLS. These insider deals are offered to our investors – you.

 

 

 

Flip Houses w/o Time, Experience & While Keeping Your Day Job Using The Simply Do It System

Dani Beit-Or 07.06.2016 Audio, Blog, Fix and Flip, General Investing, Houses, Investment Properties, Podcast, Recording, Single Family, Uncategorized, US Real Estate 0

See some of our investment properties on ReiStart.com

This video/audio recording explains the system and processes we have put together for investor to utilize in order to be able to flip houses without the need to be experts, quit their day job, or even lift a hammer.

Simply Do It has created a proven process so anyone who wants to flip houses or create a short term engine can use.

And yes, you do need cash. This is NOT a no-cash or no-money deal.
  

Visual Presentation

Read More

How Investors Can Get An Edge in Today’s Market

Dani Beit-Or 06.06.2016 Blog, Economics, General Investing, Investment Properties, Single Family, US Real Estate 0

As investors, we always want to get an edge, a better start, when we are buying an investment property.

In today’s market, it is hard to do.

Yes, there are several ways to go about it. But, some are difficult to accomplish by the not professional investor.

Here at Simply Do It, we are always looking for such ways for our own investing, but primarily for our investors – the not-full-time-pros.

We practically have an R&D side to our business that sets out to test and perfect such ideas and methods, using our own funds for the benefit of our investors.

Here some of those ways:

  1. Off-market (and many times rented) properties
  2. Delayed financing CASH REO
  3. Future options

Off-market (and many times rented) properties

Due to our network’s buying volume, many times we receive properties that are not listed, off-MLS. In many instances, these properties are already rented.

A situation like this is favorable as there is no market competition over the property. And of course, it is always a great bonus to have a tenant inside.

In most cases, if the investment makes sense, it would not hit the main market and creates a great opportunity for our investor.

Delayed financing CASH REO

This approach means we break the financing/mortgage side of the deal into two parts:

  1. We buy with cash.
  2. We get financing on the property, right after closing.

It’s a 2-stroke mortgage instead of the typical 1-stroke we usually do when buying a property.

Unfortunately, this method is only available for those who have the cash to buy the property. But if you do, it could be a great way to get that “edge.”

More specifically, this would work best with REO (bank owned) properties. (Yes, they are still around.)

When you buy a house on the open market, a cash offer would help you to some extent. A seller may choose a $175,000 cash offer over a $180,000 offer with financing. This gives you a little edge. But, the seller will probably not take the same offer, if the non-cash offer is at $185,000.

From our experience, banks are looking to sell to cash buyers and for a deeper discount.

In some markets, Simply Do It has the entire process and system in place to full deploy this strategy should you be interested.

Future Options

As we write these lines, we are already testing two other methods that will give us an edge when buying investment properties.

 

If you are interested in learning how to apply either method, contact us. We’ll be happy to go over it with you to explain the fine details and mechanics.

 

Markets and Area Recap

Simply Do It is active in multiple areas around the country, assisting investors in buying rentals and flips.

On the ground, select teams are finding, analyzing, and helping you to buy residential rentals and flips.

These teams mainly include agents, property managers, rehabbers, and lenders as well as others necessary to conduct a full transaction from start-to-finish.

Currently these are our active markets: Nashville, Houston, Dallas Ft. Worth, Oklahoma City, and Tampa.

What Does Simply Do It Have to Offer You

Dani Beit-Or 17.05.2016 Blog, FAQ, Fix and Flip, General Investing, Home Brew, Investment Properties, Single Family, US Real Estate 0

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We’ll try to keep short and simple.

Please know we have more info on Guide Investing here: simplydoit.net/guided-investing/

Simply Do It helps investors to invest in residential rentals and flips.

We are active in multiple US markets, currently: Nashville, Oklahoma City, Tampa, Houston and Dallas-Ft Worth.

In each of one these areas we have vetted local teams, mainly agents and property manager.

We use our buying power to negotiate better fees and services for you everywhere we go.

We let you use our systems and process to make sure you are making good investment decisions and have unlimited support from us in the process.

Our support to you starts before you buy, during the purchase phase and onto the rentals phase, even years after you have purchased.

We bring vast and long-term experience and want you to benefit from it while investing in real estate so you can succeed like we have.

If you ask yourself why we do it – the answer is simple: per each transaction we get a small fee from you and a cut from the agents commission.

But more importantly when our investors succeed they tell their friends and family about it.

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